Microsoft and Bank of America Merrill Lynch collaborate on trade finance

Microsoft and Bank of America Merrill Lynch have announced a collaboration on blockchain technology to fuel transformation of trade finance transacting. As part of this collaboration, the two companies will build and test technology, create frameworks, and establish best practices for blockchain-powered exchanges between businesses and their customers and banks. Microsoft Treasury experts will serve as advisors and initial test clients, establishing the first Microsoft Azure-powered blockchain transaction between a major corporate treasury and financial institution.

Currently, underlying trade finance processes are highly manual, time-consuming and costly. With blockchain, processes can be digitised and automated, transaction settlement times shortened, and business logic applied to related data, creating a host of potential benefits for businesses and financial institutions including: more predictable working capital, reduced counterparty risk, improved operational efficiency, and enhanced audit transparency, among other benefits.

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